All businesses need to raise finance to run a business

Jun 27th, 2015
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Abilene Christian University
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SOURCES OF BUSINESS FINANCE Why is there a need for finance in a business?  Setting up  Expansion  Day to Day running

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1.0 IntroductionThis is an informative and analytical report on Sources of finance. The report is written as an assignment of Managing financial resources and decision module of the first semester for the evaluation of our understanding and knowledge of the sources of finance to the lecturer Mr. Chamila. This assignment also tests our knowledge on choosing the appropriate source of finance and financial planning. The report also provides analysis of Singer (Sri Lanka) PLCs balance sheet for sources of finance. All of the information and research for this report is through the World Wide Web.2.0 Sources of FinanceFinance is essential for a businesss operation, development and expansion. Finance is the core limiting factor for most businesses and therefore it is crucial for businesses to manage their financial resources properly. Finance is available to a business from a variety of sources both internal and external. It is also crucial for businesses to choose the most appropriate source of finance for its several needs as different sources have its own benefits and costs. Sources of financed can be classified based on a number of factors. They can be classified as Internal and External, Short-term and Long-term or Equity and Debt. It would be uncomplicated to classify the sources as internal and external.2.1 Internal sources of financeInternal sources of finance are the funds readily available within the organisation. Internal sources of finance consist

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